AB InBev Financial Results
Foreign exchange risk on operating activities
AB InBev's policy is to hedge operating transactions which are reasonably expected to occur (e.g., cost of sales and selling,
general & administrative expenses) within the forecast period determined in the financial risk management policy.
Operating transactions that are considered certain to occur are hedged without any time limits. Non-operating transactions
(such as acquisitions and disposals of subsidiaries) are hedged as soon as they are highly probable.
The table below shows the company's main net foreign currency positions for firm commitments and forecasted
transactions for the most important currency pairs. The open positions are the result of the application of AB InBev's risk
management policy. Positive amounts indicate that the company is long (net future cash inflows) in the first currency of the
currency pair while negative amounts indicate that the company is short (net future cash outflows) in the first currency of
the currency pair. The second currency of the currency pairs listed is the functional currency of the related subsidiary.
31 December 2021
Total
Total
31 December 2022
Total
Million US dollar
exposure
Total
hedges
Open
position
Open
exposure
hedges
position
Euro/Mexican peso
(108)
100
(8)
(112)
111
(1)
Euro/Pound sterling
(136)
112
(24)
(124)
112
(12)
Euro/South African rand
(67)
31
(37)
(79)
75
(4)
Euro/US dollar
(38)
58
20
(123)
100
(23)
Mexican peso/Euro
(269)
268
(2)
(254)
231
(23)
US dollar/Argentinian peso
(702)
206
(496)
(661)
674
13
US dollar/Bolivian boliviano
(74)
76
1
(80)
75
(5)
US dollar/Brazilian real
(1955)
1 789
(166)
(1 846)
1 618
(228)
US dollar/Canadian dollar
(310)
249
(61)
(304)
253
(51)
US dollar/Chilean peso
(135)
129
(6)
(171)
162
(9)
US dollar/Chinese yuan
(125)
113
(12)
(123)
116
(7)
US dollar/Colombian peso
(615)
559
(56)
(476)
434
(42)
US dollar/Euro
(134)
111
(23)
(103)
96
(7)
US dollar/Mexican peso
(1442)
1 436
(6)
(1 236)
1 168
(68)
US dollar/Paraguayan guarani
(144)
135
(8)
(153)
139
(14)
US dollar/Peruvian nuevo sol
(264)
276
13
(292)
278
(14)
US dollar/South African rand
(196)
121
(75)
(196)
148
(48)
US dollar/South Korean won
(121)
110
(12)
(114)
79
(35)
Others
(326)
197
(129)
(424)
313
(111)
Further analysis on the impact of open currency exposures is performed in the currency sensitivity analysis below.
Hedges of firm commitments and highly probable forecasted transactions denominated in foreign currency are designated
as cash flow hedges.
Foreign exchange risk on foreign currency denominated debt
It is AB InBev's policy to have the debt in the subsidiaries as much as possible linked to the functional currency of the
subsidiary. To the extent this is not the case, foreign exchange risk is managed using derivatives unless the cost to hedge
outweighs the benefits. Interest rate decisions and currency mix of debt and cash are decided on a global basis and take
into consideration a holistic risk management approach.
A description of the foreign currency risk hedging of debt instruments issued in a currency other than the functional currency
of the subsidiary is further detailed in the Interest Rate Risk section below.
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